Cramer Continues To Fill His Soup Bowl With Panera Bread (PNRA)

Last night on Mad Money, Jim Cramer talked about why he is still in love with Panera Bread (Nasdaq: PNRA). Cramer mentioned that Panera's gross margins will continue to expand because Panera's raw material costs (wheat) have fallen. Additionally, the fall in gas prices has given consumers more money to spend on upscale fast dining restaurants like Panera. Cramer likes that Panera Bread continues beat earnings estimates and comp store sales.

Cramer had on Panera Bread's CEO Ron Shaich again to talk about how Panera is weathering in the tough economy. Panera is up 15% since Cramer had Shaich on his show back on October 22nd.

Comp sales have been in positive territory for the first three quarters, and CEO Ronald Shaich told Cramer that this quarter would be no different. Earnings are expected to jump between 46% and 54%. Shaich said, "We’re not walking away from that guidance."

Additionally, Shaich said, "A recession is probably the greatest opportunity you can have to build a company and to build a fortune."

Cramer said Panera this is the type of stock you are looking for in this environment--a winning stock with great management with lower costs than its competition.

Panera has 0 debt on its books, over $30 million in cash and should generate $70 million in free cash flow next year. In this tight credit environment, Panera does have a strong financial outlook and likely will not have to borrow from the bank anytime soon.

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Panera Bread Company (Panera Bread) operates retail bakery-cafes.

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